The Finance Ministry in a statement yesterday, said the Federal Government stressed that based on current laws, the Kelantan Government, like other states in Peninsular Malaysia, did not have any right to the five per cent cash payment from the petroleum revenue acquired from its waters, more than three nautical miles from the point of low tide or state coast line.

However, the statement said beginning 2015, the Kelantan Islamic Affairs and Malay Customs Council would distribute compassionate aid through the compassionate aid programme, together with the Kelantan Federal Development Department at a rate of 50:50, up to a maximum of RM25 million per agency.

This was an interim measure until a more comprehensive solution was implemented by the Federal Government, once claims made by the Kelantan Government for petroleum revenue was decided by the courts.

Meanwhile, Mustapa also refuted the state government’s allegation that it had been marginalised by the Federal Government in terms of development.

“The Federal Government has channeled over RM590 million to Kelantan between 2005 and 2013, except in 2008, to cover for the state government’s deficit budget.

Besides, RM239 million had also been spent by the Federal Government to develop Tunjong, including to establish its Rural Transformation Centre and the Federal Government Complex in the area,” he said. - Bernama